Method and apparatus for creating and administering a publicly traded interest in a commodity pool

Abstract

Systems, methods, apparatus, computer program code and means for creating and administering a publicly traded interest in a commodity pool include forming a commodity pool having a first position in a futures contract and a corresponding second position in a margin investment, and issuing equity interests of the commodity pool to third party investors.

1. A method for creating a publicly traded interest in a commodity pool, comprising:
 forming a commodity pool having a public pool, an investing pool, a first position in a futures contract, and a second position in a margin investment, said investing pool holding said first and said second position; 
 issuing equity interests of said investing pool to said public pool; 
 issuing equity interests of said commodity pool to investors, said equity interests of said commodity pool issued to investors are equity interests of said public pool and are adapted for trade on an exchange; and 
 periodically calculating a dividend earned by said commodity pool, said dividend is a dividend earned by said investing pool. 
 
   
   
     2. The method of  claim 1 , wherein said dividend is paid to said public pool. 
   
   
     3. The method of  claim 1 , wherein said dividend is used to increase said investing pools position in said futures contract. 
   
   
     4. The method of  claim 1 , wherein said dividend is earned from said second position in said margin investment. 
   
   
     5. The method of  claim 1 , wherein said second position is selected to margin said first position. 
   
   
     6. The method of  claim 1 , wherein said futures contract is a long-dated futures contract. 
   
   
     7. The method of  claim 1 , wherein said futures contract is a contract on a commodity index and traded on a designated contract market. 
   
   
     8. The method of  claim 1 , wherein said issuing said equity interests further comprises aggregating said equity interests into creation units and issuing said creation units as shares for trade on an exchange. 
   
   
     9. A system, comprising:
 a processor; and 
 a storage device in communication with said processor and storing instructions adapted to be executed by said processor to:
 form a commodity pool having a public pool, an investing pool, a first position in a futures contract and a second position in a margin investment, said investing pool holding said first and said second position; 
 issue equity interests of said investing pool to said public pool; 
 issue equity interests of said commodity pool to investors, said equity interests of said commodity pool issued to investors are equity interests of said public pool and are adapted for trade on an exchange; and 
 periodically calculate a dividend earned by said commodity pool, said dividend is a dividend earned by said investing pool. 
 
 
   
   
     10. A medium storing instructions adapted to be executed by a processor to perform a method for creating publicly traded interests in a commodity pool, said medium comprising:
 instructions for forming a commodity pool having a public pool, an investing pool, a first position in a futures contract and a second position in a margin investment, said investing pool holding said first and said second position; 
 instructions for issuing equity interests of said investing pool to said public pool; 
 instructions for issuing equity interests of said commodity pool to investors, said equity interests of said commodity pool issued to investors are equity interests of said public pool and are adapted for trade on an exchange; and 
 instructions for periodically calculating a dividend earned by said commodity pool, said dividend is a dividend earned by said investing pool. 
 
   
   
     11. The medium of  claim 10 , further comprising:
 instructions for pricing said equity interests of said commodity pool issued to investors on a regular basis based on price information associated with said futures contract and said margin investment. 
 
   
   
     12. The medium of  claim 10 , further comprising:
 instructions for causing said pricing to be disseminated to an exchange.